Charles Nenner Warns of Deflation, Says Cash is Best Now

By on October 1, 2014

Charles Nenner Research CenterRenowned market technician Charles Nenner, founder and president of the Charles Nenner Research Center, was on CNBC yesterday speaking about his latest forecast. Nenner began by saying that his target on the S&P 500 was 2,020, which he added had recently topped at 2,014. Currently, Nenner said he is “totally” out of the market.

Nenner, developer of the “Nenner cycle,” which he says can time the ups and downs of any market, said, “I dare to predict that for the next many years, you will not see the S&P more than 5% higher than this [1,972 at the time of this interview].”

“And there’s a major thing coming down — I’m talking about far in the future — a major collapse coming down starting in 2018 to 2020,” Nenner added. Nenner sees the next bull market starting in 2020.

“I think the big problem is in deflation, which I’m saying every year,” Nenner explained.

Further Nenner added, “Europe is close to deflation, Japan is still in deflation, China has very low inflation, and if the dollar continues to rise in the United States, we’ll get deflation over here. And I don’t think investors are ready for it.”

Nenner was asked to comment on the effects of the recent 9% rise in the dollar index, which last occurred in 2008 when the financial crisis was beginning. Nenner said he also considers the biggest part of the world is already in deflation and the U. S. is just “so so.” A continued rise in the dollar could cause Europe exports to create downward price pressure and cause problems because we [the US] owe so much money, Nenner explained.

When asked what investors should do, Nenner said they need to be very careful and the best thing to be in is cash. Nenner is looking for a low in gold soon, “so we think we go back into gold.”

Nenner finally said “the euro is bad and we don’t trust the bond market.”

Back in February, Nenner said stocks were topping out this year and gold would hit a major low in July [link].

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